The share price of renewable energy company Doral Group Renewable Energy Resources (TASE: DORL) has risen by over 20% in the past two days, and in the past year it has risen by over 140%, leaving its cleantech competitors far behind. The sectoral index has risen by just 25% in the past year.
Owners become billionaires
In fact, since releasing its quarterly financials, Doral added almost NIS 1 billion to its market cap in two sessions, to reach NIS 5.5 billion. The big gainers are of course the founders, chairperson Doron (Dori) Davidovitz and Alon Kesel, each of whom holds 19% of the company. The recent jump in the share price added about NIS 200 million to the value of each of their holdings, bringing them close to being shekel billionaires, on paper.
What impressed investors so much in Doral’s financials? Although the company still posts losses, it presents more than 50% growth in revenue. But two pieces of positive news encouraged the market. The first is to do with taxation, the second with guidance, and both are connected to the question whether Doral has had the luck to be in the right place at the right time.
Right place: the US. The scope of Doral’s projects there is huge, and already amounts to 7.7 gigawatts. For the sake of comparison, that is just over half the power consumption of the entire State of Israel at the peak of the winter season. In addition, projects that could yield another 2.5 gigawatts are expected to start construction in the coming year and to be connected to the grid in by the end of 2027. All this is in the red-hot US market, where demand for energy, particularly solar energy, is expected to be dramatic in the coming years.
Right time: Doral is expected to complete these projects just before the expiration of the tax breaks for renewable energy developments in the US. Leader Capital Markets analyst Gilad Ben-Zvi says, "In the previous financials they reported only 2.5 gigawatts that they were certain would qualify for the tax breaks, and following recent developments they are now able to provide another level of certainty for investors on the large scope of mature projects that they will manage to connect.
"There’s a very strong environment at present in the US energy market, because of the considerable rise in demand for power in the coming years from new server farms and the substantial consumption of electricity for artificial intelligence."
Doral is considered to be in a good position in relation to US companies as well, since it is expected to manage to connect new projects, and apply the tax breaks to them, while its competitors are still standing in line to connect to the grid.
"They’ll need a lot of money to meet the guidance"
The combination of the tax breaks, the acceleration of projects, and the company’s unique positioning, have led Doral to issue optimistic guidance. The projects in the US will yield EBITDA of over $850 million a year from 2029, which compares with $61 million in the first nine months of 2025, and just $10 million in 2024. But what are the chances of meeting this fantastic guidance?
In order to maximize profits, Doral increased its position in US subsidiary Doral Renewables LLC by buying 10% of its shares from US partner/CEO Nick Cohen for $67 million. Doral thus increased its stake in the US company to 36%, with an option to buy a further 5% later. Incidentally, former Mossad chief Yossi Cohen serves as a director on Doral’s behalf in the US company, and holds options on its shares estimated in the past to be worth tens of millions of shekels.
There are, however, several question marks over Doral’s optimistic forecast. "There is still uncertainty about the company’s ultimate value," says Leaders Ben-Zvi, adding "we are still waiting for the next offering."
Doral, he says, is still a company short of cash, and in order to finance its wave of construction "they will need a lot more money, which will come from raising capital or even an IPO in the US. But the current deal gives a floor to the company’s value, and that’s what provided a following wind for the stock."
Of course it remains to be seen whether the positive investor sentiment is maintained, and whether Doral will abide by its dramatic promises in the US market.
Published by Globes, Israel business news - en.globes.co.il - on December 1, 2025.
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